Within the AD/AS Model, If an Unanticipated Reduction in Aggregate

Multiple Choice

Within the AD/AS model, if an unanticipated reduction in aggregate demand results in less than the full-employment rate of output,

A) the natural rate of unemployment will increase.
B) long-run aggregate supply will increase.
C) lower resource prices and declining interest rates will direct the economy back to full employment.
D) higher resource prices and rising interest rates will direct the economy back to full employment.